Furniture prices fall despite overall inflation rise

Furniture and household goods prices fell as UK inflation rises in the year to June.

According to the latest figures from the Office for National Statistics, the Consumer Prices Index (CPI) rose to 0.5% in June 2016 compared to last year, growing from a rise of 0.3% in the year to May last month.

Within the sectors, furniture and household goods saw prices drop by 0.3% between May and June this year, but rose by 0.3% between the same two months last year. The downward contribution came almost entirely from furniture and furnishings, particularly kitchen units.

Despite the fall in prices within furniture – as well as the accommodation sector, including hotels, a rise in air fares, motor fuels and variety of recreational and cultural goods and services were the main contributors to the increase in the rate.

Stated within the ONS report, Philip Gooding highlighted: “The rate is the same as observed for March and slightly above the 0.3% recorded for all other months of 2016.

“The rates for 2016 to date are still relatively low but are above those generally experienced in 2015, which was a year of historically low inflation, with the rate being at or around zero for much of the year.”